Government boosts efforts to empower Bumiputera entrepreneurs in timber industry - Johari

PUTRAJAYA - The government is intensifying its efforts to increase Bumiputera involvement in the timber industry, a sector where their participation remains low despite rising exports.

The Symposium on Empowering Bumiputera in the Timber Industry, held today at The Everly Hotel in Putrajaya, addressed the need for stronger support systems to help Bumiputera entrepreneurs thrive.

The event, officiated by Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani, was organised by the Malaysian Bumiputera Timber and Furniture Entrepreneurs Association (Peka) in collaboration with the Malaysian Timber Industry Board (MTIB) and the Malaysian Timber Council (MTC).

Johari praised Peka and MTIB for their efforts in advocating for Bumiputera entrepreneurs and congratulated Peka on its 34th anniversary.

The Titiwangsa Member of Parliament also stressed that close cooperation between the government, industry and entrepreneurs is crucial for the sector’s success.

This symposium follows up on engagement sessions held in October 2024, which contributed to the creation of Peka’s Roadmap for the Timber Industry.

The roadmap outlines key strategies, including improved access to raw materials, human capital development, the adoption of modern technology, preservation of craftsmanship and global expansion for Bumiputera SMEs.

“Malaysia’s timber exports reached RM22.90 billion in 2024, marking a 4.9 per cent increase from the previous year.

“Bumiputera entrepreneurs contributed RM44.03 million to this total, representing a 33.3 per cent rise from 2023. However, their share remains below 1 per cent of the country’s total timber exports. Many Bumiputera-owned businesses in the sector are still small or micro enterprises, highlighting the need for more structured support," Johari said.

The Ministry, through MTIB and MTC, continues to support Bumiputera participation through various initiatives.

One such initiative is the Integrated Furniture Marketing Programme under the Central Panel Contract (KPB), which supports 85 Bumiputera companies supplying wood-based furniture to government agencies.

School furniture contracts are the largest allocation under the KPB system, with an estimated RM80 million allocated for new and replacement furniture for schools in 2025.

The Minister also pointed out other key initiatives, such as the Bumiputera SME Production Capacity Enhancement Programme, which has provided 175 entrepreneurs with 319 high-tech machinery units.

The Raw Material Support Programme offers an RM16 million revolving fund for interest-free loans.

“So far, RM34.95 million has been disbursed to 131 applicants, resulting in secured contracts worth RM221.41 million.

"Marketing efforts have expanded, with the Wood & Lifestyle Fair generating RM55.73 million in sales since 2016. International promotion through exhibitions and missions to Turkey, Bulgaria and Saudi Arabia has led to additional sales of RM4.57 million,” he added.

Meanwhile, the Timber Factory Transformation Programme focuses on enhancing manufacturing efficiency through Green 5S, Lean Management and Innovation Management, helping businesses reduce costs by up to 30 per cent while increasing production capacity by up to 50 per cent.

Johari reiterated the government’s commitment to ensuring the continued success of these initiatives.

“With sustained collective efforts, Bumiputera participation in the timber sector is expected to grow, positively contributing to the national economy,” he said.